Sm Energy Company · NYSE:SM
Sm Energy — Q4 2025 Earnings Presentation
36 slides from Sm Energy's earnings presentation, Feb 26, 2026
Slide 1: 2025 Results & 2026 Outlook
2025 Results & 2026 Outlook FEBRUARY 25, 2026 NYSE: SM SM-Energy.com
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of securities laws. The words “action,” “anticipate,” “deliver,” “demonstrate,” "establish," “estimate,” “expects,” "goal," "generate," “guidance,” “integrate,” “maintain,” “objectives,” “
Slide 3: Why Invest in SM…
Why Invest in SM… PREMIER OPERATOR OF TOP-TIER ASSETS RETURNS-FOCUSED 1▪ ▪ Maximize free cash flow over multi-year period Prioritize VALUE over VOLUME WORLD-CLASS TECHNICAL TEAM ▪ Proven execution excellence ▪ Successful history of unlocking multiple, stacked intervals VALUE-DRIVEN SYNERGIES ▪ NPV $
Slide 4: SM Energy – A Powerhouse in Shale
SM Energy – A Powerhouse in Shale PREMIER OPERATOR OF TOP-TIER ASSETS ACROSS THE HIGHEST-RETURN U.S. BASINS DJ Basin SM AT A GLANCE ~340,000 NET ACRES (FY26e, unless noted) Uinta Basin ~26% of total prod(3) Net Acres(1) (as of Jan 2026) ~797,000 ~62,000 NET ACRES ▪ Low-cost, high-margin basin Produc
Slide 5: 2025 – A Year of Record Performance
2025 – A Year of Record Performance EXECUTING ON OUR CORE STRATEGIC OBJECTIVES Operational Excellence Net Proved Reserves(3) ▪ Record operating cash flow and adj. EBITDAX(1) 1000 Avg. Net Daily Production ▪ Record production and oil volumes 200 Estimated Net Proved Reserves (MMBoe) ▪ Successful Uint
Slide 6: 2026 Strategic Objectives
2026 Strategic Objectives A CLEAR PATHWAY TO VALUE CREATION 1 INTEGRATE 2 EXECUTE 3 BOLSTER Integrate & Capture Maximize Free Strengthen Capital Synergies Cash Flow Structure ▪ Action $200–$300 million of ▪ Safety-led, efficiency-driven ▪ $1.0B+ of divestitures expected synergies operations ✓ $950MM
Slide 7: Capture Value-Accretive Synergies
Capture Value-Accretive Synergies POST-MERGER INTEGRATION UNLOCKS $1.0–$1.5 BILLION IN EXPECTED VALUE (NPV-10)(1) Annual Cost Synergies (millions) $25 ~$300/yr $50 $25 Actioned To Date Identified Synergies $25 $30 ~$200/yr Potential Synergies $100 $30 $950MM expected divestiture proceeds faster debt
Slide 8: 2026 Plan Highlights
2026 Plan Highlights EXPANDED PORTFOLIO PROVIDES FLEXIBILITY TO MAXIMIZE FREE CASH FLOW Operational Plan Capital Assumptions Total Production(1) 146 – 153 Total Capital Expenditures(2)(3) $2.65 $2.65 –– $2.85B $2.85B (MMBoe) (~ 54% Oil) DC&E only $2.3 – $2.5B Activity 11 4.5 245 295 Uinta Basin Avg.
Slide 9: Prioritizing VALUE Over VOLUME
Prioritizing VALUE Over VOLUME REDUCING ACTIVITY LEVELS TO MAXIMIZE FREE CASH FLOW AND IMPROVE RETURNS DISCIPLINED EXPECTED TOTAL PRODUCTION ENHANCED INVESTMENTS (MMBoe) VALUE 14% Capex Decrease ▪ 2H26 run-rate ~ 420 – 430 MBoe/d 2-Stream Conv. → 11 $3.2B ▪ Higher oil mix STx Divest Impact → 15 $2.6
Slide 10: Permian Basin—High-Margin Oil
Permian Basin—High-Margin Oil EXECUTION AT DEPTH—DRILLING MORE COMPLEX, OIL-BEARING ZONES Well Performance Recent Highlights SM Energy Wells v. Howard County ▪ Successfully drilling higher- 250 Peers(1) complexity reservoirs— FY 2026 Plan Wolfcamp D and Woodford-Barnett Avg. Cumulative Oil Productio
Slide 11: Oil-Weighted DJ Basin
Oil-Weighted DJ Basin BRINGING VALUE FORWARD THROUGH EXECUTION AND INNOVATION Well Performance Recent Highlights SM Energy Watkins Wells by Year(1) ▪ Watkins well performance improved in 2025 FY 2026 Plan Avg. Cumulative Oil Production (MBbl/10,000 ft) 120 Avg. Rig ~1 100 ▪ 2-mile U-turn well design
Slide 12: Liquids-Rich South Texas
Liquids-Rich South Texas OPERATING EFFICIENCIES DRIVING D&C COSTS DOWN Well Performance Drilled Ft/Day 250 SM Energy Wells v. Austin Chalk Peers(1) FY 2026 Plan(2) Avg. Cumulative Oil Production (MBbl/10,000 ft) 26% Faster 200 FY25 v. FY23 Avg. Rigs ~1.5 48% Avg. Frac Crew ~1 150 2023 2024 2025 Net
Slide 13: Uinta Basin—Oil-Rich, Premium Crude
Uinta Basin—Oil-Rich, Premium Crude INNOVATION IMPROVES CAPITAL EFFICIENCY AND UNLOCKS RESOURCE VALUE Well Performance Recent Highlights Uinta Oil Production Competitive with Other Basins(1) ▪ Successful 4-mile lateral drilling execution FY 2026 Plan 300 Early Upper Cube results and Avg. Rigs ~ 2.5
Slide 14: Long-Run Inventory Strength
Long-Run Inventory Strength HIGH-QUALITY, LOW BREAKEVEN ASSETS WITH OPTIONALITY 8+ years(1) Total Net Inventory Lateral Length ~ 11,600-foot pro forma @ $60/Bbl 140% ↑ net lateral feet avg. lateral price-resilient asset portfolio Total Net Inventory Lateral Length with optionality 10% ↑ avg. lateral
Slide 15: Bolster the Balance Sheet
Bolster the Balance Sheet ENHANCED DURABILITY WITH INCREASED LIQUIDITY, DIVESTITURES, IMPROVED CREDIT $ millions Debt Maturities(1) as of January 31, 2026 ~$2.9B $1.0B+ $2,500 Liquidity Divestiture Target as of Accelerating February 20, 2026 De-Leveraging $2,000 $1,500 $5.0B $2.5B Increased Increase
Slide 16: Enhanced Return of Capital Program
Enhanced Return of Capital Program BALANCED AND ADAPTABLE PROGRAM INCREASES STOCKHOLDER VALUE Annual Fixed Dividend ▪ 10% dividend increase—$0.88/share ▪ Sustainable growth over time $0.88/ share Free Cash Flow Debt Reduction ▪ Apply 100% of expected South Texas divestiture proceeds 80% ▪ Target—80%
Slide 17: Why Invest in SM…
Why Invest in SM… PREMIER OPERATOR OF TOP-TIER ASSETS RETURNS-FOCUSED 1▪ ▪ Maximize free cash flow over multi-year period Prioritize VALUE over VOLUME WORLD-CLASS TECHNICAL TEAM ▪ Proven execution excellence ▪ Successful history of unlocking multiple, stacked intervals VALUE-DRIVEN SYNERGIES ▪ NPV $
Slide 18: Appendix
Appendix
Slide 19: 2026 Guidance and Asset Details
2026 Guidance and Asset Details Guidance 1Q26 FY26 Capital Program FY: ~ 125 drills | ~150 TILs Capital Expenditures(1) $740 – $780 million $2.65 – $2.85 billion Permian ~ 11,300’ average lateral length DC&E $2.3 – $2.5 billion Basin(7) FY Avg: 6 rigs + 2 frac crews Facility, Land, and Other ~ $280
Slide 20: Leasehold Summary
Leasehold Summary FOUR CORE BASINS WITH SUBSTANTIAL ACREAGE POSITIONS As of Net Acres(1) Permian Basin January 31, 2026 ~240,000 PERMIAN BASIN NET ACRES Midland Basin 207,500 Delaware 32,500 Permian Basin Total (2) 240,000 ~340,000 DJ BASIN NET ACRES DJ Basin 340,000 South Texas (3) 155,000 ~155,000
Slide 21: SM Energy – A Powerhouse in Shale
SM Energy – A Powerhouse in Shale PREMIER OPERATOR OF TOP-TIER ASSETS ACROSS THE HIGHEST-RETURN U.S. BASINS Permian Basin DJ Basin Uinta Basin ~240,000 NET ACRES ~340,000 NET ACRES ~62,000 NET ACRES WELD MORGAN BOULDER DUCHESNE UINTAH NET ACRES ADAMS South Texas ~155,000 NET ACRES (1) ARAPAHOE DIMMI
Slide 22: 2025 in Review
2025 in Review RECORD FULL YEAR ADJ. EBITDAX (1) —UP 13% YOY WITH RECORD NET PRODUCTION FY25 ADJ. FREE CASH NET INCOME ADJ. EBITDAX(1) NET PRODUCTION FLOW (1) $5.64 $2.26 $620 206.8 Per Diluted Share Billion Million MBoe/d 4Q25 ADJ. FREE CASH NET INCOME ADJ. EBITDAX(1) NET PRODUCTION FLOW (1) $0.95
Slide 23: 4Q25 Financial Highlights
4Q25 Financial Highlights RESILIENT MARGINS Key Metrics 4Q25 Net Production and Pricing Total net production (MMBoe) 19.0 206.9 MBoe/d Total net production (MBoe/d) 206.9 Oil / liquids percentage 52% / 65% Pre-hedge realized price ($/Boe) $36.92 Post-hedge realized price(1) ($/Boe) Costs (per Boe) $
Slide 24: 4Q25 Realizations by Asset
4Q25 Realizations by Asset Midland Basin South Texas Uinta Basin Total Benchmark Pricing Net Production Volumes Oil (MMBbls) 4.8 1.8 3.4 10.0 NYMEX WTI Oil ($/Bbl) $59.14 Gas (Bcf) 17.4 18.6 3.4 39.4 NGL (MMBbls) 0.0 2.5 0.0 2.5 NYMEX Henry Hub Gas ($/MMBtu) $3.55 Total (MMBoe) 7.7 7.4 3.9 19.0 OPIS
Slide 25: 2025 Net Proved Reserves
2025 Net Proved Reserves Estimated Net Proved Reserves by Asset SEC Pricing As of Midland South Uinta 2025 2024 % Change Total December 31, 2025 Basin Texas Basin Oil ($/Bbl) $65.34 $75.48 -13% Oil (MMBbl) 117.0 74.3 92.6 283.9 Gas ($/MMBtu) $3.39 $2.13 59% Gas (Bcf) 583.0 906.3 109.2 1,598.5 NGLs (
Slide 26: Bolster the Balance Sheet
Bolster the Balance Sheet SENIOR NOTES DETAILS Senior Notes 2026 2027 2028 2029 2030 2031 2032 2033 Amount ($MM) $419 $400 $417 $1,350 $400 $750 $1,000 $1,350 $750 $750 Coupon 6.750% 5.000% 6.625% 8.375% 6.500% 6.750% 8.625% 8.750% 7.000% 9.625% Initial Call Date 9/2021 10/2023 1/2022 7/2025 7/2024
Slide 27: Activity by Asset
Activity by Asset WELLS DRILLED, FLOWING COMPLETIONS & DUC COUNT Wells Drilled Flowing Completions DUC Count 4Q25 2025 YTD 4Q25 2025 YTD As of December 31, 2025 Gross Net Gross Net Gross Net Gross Net Gross Net Midland Basin RockStar 2 2 26 21 8 6 41 30 4 3 Sweetie Peck 3 2 31 20 9 4 43 28 14 10 Mid
Slide 28: Hedging Summary
Hedging Summary STRATEGY IS TO ALIGN HEDGING WITH LEVERAGE 2026 SWAPS AND COLLARS:(1) Disciplined and Consistent Program Oil volumes hedged(2) ▪ Hedging aligned with leverage ▪ Management of commodity price volatility Hedged, and risk Weighted-average 47% price of: ▪ Downside protection with two-way
Slide 29: Oil Derivative Positions
Oil Derivative Positions(1) Weighted-Average NYMEX WTI NYMEX WTI Oil Oil Swaps Oil Collars Price of Swaps and Collars Volume Volume Floor Ceiling Floor Ceiling Period $/Bbl(2) (MBbls) (MBbls) $/Bbl(2) $/Bbl(2) $/Bbl(3) $/Bbl(3) Q1 2026 5,539 $65.64 3,482 $58.04 $69.15 $62.71 $66.99 Q2 2026 5,969 $61
Slide 30: Gas and NGL Derivative Positions
Gas and NGL Derivative Positions(1) Weighted-Average NYMEX Henry Hub IF WAHA IF HSC NYMEX Henry Hub Gas Gas Swaps Gas Swaps Gas Swaps Gas Collars Price of Swaps and Collars Volume Volume Volume Volume Floor Ceiling Floor Ceiling Period $/MMBtu(2) $/MMBtu(2) $/MMBtu(2) (BBtu) (BBtu) (BBtu) (BBtu) $/M
Slide 31: NGL Realizations
NGL Realizations 2026 PLAN ASSUMES ETHANE REJECTION IN 1Q26 AND 4Q26 AUSTIN CHALK: High Liquids Content Realizations by Quarter 4Q25 3Q25 2Q25 1Q25 4Q24 OPIS Benchmark(1) Price ($/Bbl) $24.92 $25.58 $26.99 $31.29 $29.29 SM Energy NGL Realization % Liquids $20.67 $20.79 $21.91 $25.86 $24.49 ($/Bbl) %
Slide 32: Non-GAAP Definitions, Reconciliations and Disclosures
Non-GAAP Definitions, Reconciliations and Disclosures
Slide 33: Definitions of Non-GAAP Measures and Metrics as Calculated by the Company
Definitions of Non-GAAP Measures and Metrics as Calculated by the Company To supplement the presentation of its financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company provides certain non-GAAP measures and metrics, which are used by management
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDAX(1) Three Months Ended Twelve Months Ended Adjusted Net Income(1) Three Months Twelve Months Ended December Ended December (in millions) December 31, 2025 December 31, 2025 (in millions, except per share data) 31, 2025 31, 2025 Net income (GAAP) $ 109 $ 648 N
Slide 35: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Twelve Months Adjusted Free Cash Flow(1) Ended December 31, Ended December 31, (in millions) 2025 2025 Net cash provided by operating activities (GAAP) $ 452 $ 2,011 Net change in working capital, including change in certain long-term (7) 8 prepayments Cash flow
Slide 36: Contact Information
Contact Information INVESTOR RELATIONS Patrick A. Lytle Senior Vice President – Finance 303.864.2502 plytle@sm-energy.com Meghan Dack Senior Manager – Investor Relations 303.837.2426 mdack@sm-energy.com MEDIA media@sm-energy.com